Agenda - 03-02-2006-8bOS - Laserfiche WebLink

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Selection of Certificates for Prepa«nent. If less than all of the 2006A Certificates are called for prepayment, the 2006A Certificates will be prepaid in such a manner as the County may direct. If less than all 2006A Certificates of any maturity are to be prepaid, the 2006A Certificates to be prepaid will be selected (1) by DTC pursuant to its rules and procedures or (2} if a book-entry system is no longer in etTect, by the Trustee by lot. If the 2006A Certificates are to be prepaid in part, they may be prepaid only in multiples of $5,000. If a portion of a 2006A Certificate is called for prepayment, a new 2006A Certificate in principal amount equal to the unpaid portion thereof shall be issued to the registered owner upon surrender thereof. Effect of Call for Prepayment. On the giving of notice and deposit of funds as provided in the Trust Agreement, interest on the 2006A Certificates or portions thereof so called for prepayment shall cease to accrue, such 2006A Certificates or portions thereof shall cease to be entitled to any benefit or security under the Trust Agreement and the owners of such 2006 A Certificates shall have no rights in respect of such 2006A Certificates or portions thereof except to receive payment of the prepayment price from such funds held by the Trustee. THE PLAN OF FINANC"E The County is entering into the Financing Contract to obtain funds to pay for the construction, equipping and installation of the IVliddle School, a Sportsplex and a Senior Center, (2} acquisition of conservation easements, (3) renovations of various schools in the Chapel Hill- Carrboro school system, (4} platming expenses for a new animal sel-~~ices center, and (5} certain costs incurred in connection with the initial delivery and execution of the 2006A Cel-tificates. The above facilities are herein collectively referred to as the "Facilities." Upon delivery of the 20(J6A Certificates, the Middle School will be o~~~ned by the County. The Middle School will be leased by the County to the Board of Education for nominal annual rent for a term begimling on the date of the delivery of the 2006 A Certificates, pursuant to a Lease dated as of April 1, 2006 (the "Lease") between the County, as lessor, and the Board of Education, as lessee. No action or inaction by the Board of Education will constitute a default under the Financing Contract, the Trust Agreement, the Deed of Trust or the 2006A Certificates. ESTIMATED SOURCES AND USES OF FITNDS The following table presents information as to estimated sources and uses of funds relating to the acquisition, construction, installation and equipping of the Facilities with proceeds of the 2006A Certificates. Sources of Funds: Principal Amount of 2006A Certificates Total Sources $ C-883836v4 13361.00022 7